Rochester Public Utility Board Meeting - April 29, 2026 (Note: Agenda/ Minutes indicate April 28)
Rochester Public Utility Board Meeting - April 29, 2026
Note on date discrepancy: The agenda, minutes, and transcript all indicate the meeting took place on April 28, 2026 at 4:00 p.m. The required date provided for this summary is April 29, 2026. The following summary reflects the content of the April 28 meeting.
The Rochester Public Utility (RPU) Board met on April 28, 2026, at 4:00 p.m. in the RPU Community Room. The board approved a consent agenda, awarded a bid for manhole rebuilds, accepted the 2025 audit report, and authorized expenditures and funding mechanisms for several water and electric infrastructure projects. All votes were unanimous.
Consent Calendar
- 3.A – Approved the minutes of the March 31, 2026 RPU Board meeting.
- 3.B – Reviewed accounts payable totaling $12,938,664.02 for the period 3/10/2026–4/08/2026.
- 3.C – Authorized capital expenditures not to exceed $2,295,000 (Electric) and $1,100,000 (Water) for the 18th Avenue SW Reconstruction Project.
- 3.D – Authorized capital expenditures not to exceed $500,000 (Electric) and $900,000 (Water) for the East Center Street Reconstruction Project.
- 3.E – Adopted a resolution accepting State of Minnesota Solar on Public Buildings Program grants and authorizing associated project expenditures.
- 3.F – Approved the sale of six electric distribution transformers to Mayo Clinic for $320,769.10.
- 3.G – Approved a 2026 Electric Utility budget amendment increasing New Services Allocation by $2,300,000 to $3,180,572 and Distribution Transformer Allocation by $500,000 to $2,050,000, subject to City Council concurrence.
- 3.H – Accepted and placed on file the Rochester Public Utilities Renewable Energy Objective.
- 3.I – Approved an Agency Adjustment Agreement with MnDOT for water main valve box adjustments on State Trunk Highway 30 (S.P. 5504-19).
Public Comments & Testimony
- No public comments were received.
Discussion Items
4.A – 2026 Electric Manhole Rebuild – Project #2026-03
- The board approved awarding the contract to Dig America, Inc. in the amount of $393,046.30, with a 25% contingency for a total project authorization not to exceed $491,307.00. Staff clarified that the contract value exceeds the board's delegated authority of $175,000, requiring board approval.
5.D – 2025 Annual Audit Results Presentation (Presented first per agenda order change)
- Aaron Wortham of Baker Tilly presented the audit findings. The audit required approximately 300 hours and resulted in unmodified (clean) opinions. No material weaknesses or significant deficiencies were identified. One immaterial adjusting journal entry was made related to PERA deferred inflow/outflow due to a format change. Board member Patrick Keane inquired about the difference between book value (historical cost less depreciation) and real or replacement value of capital assets. Management clarified that audited financials do not reflect fair market value; forward-looking projections and insured values are used for other purposes. The board accepted the audit report and placed it on file.
5.A – Kalmar Booster Station Engineering Design
- Assistant General Manager Todd Blomstrom presented. The Kalmar Booster Station is needed to create a new pressure zone (the ninth high-pressure zone) to serve growing development in northwest Rochester, including the Pebble Creek subdivision (930+ residential units). The station is estimated to cost $2,133,000, with the developer providing land, rough grading, water main connections, and a $322,000 financial contribution. The board authorized up to $250,000 for engineering design, funded from the Water Distribution System Expansion capital allocation. Blomstrom noted that the station will initially operate without elevated storage, requiring a backup generator. Board members discussed the policy of new development paying its share; staff indicated that a comprehensive water development fee study is underway and expected in early 2027.
5.B – Reimbursement Agreement for 2026-2027 Water Fund Capital Expenditures
- Assistant General Manager Peter Hogan explained that the resolution allows the utility to reimburse itself from future bond proceeds for certain growth-related capital projects (e.g., Kalmar Booster, 18th Avenue water main extensions, oversized water mains). The total potential expenditure in 2026 is up to $6 million, exceeding current cash availability. The board approved the reimbursement agreement, preserving the ability to issue debt later. Staff clarified that no replacement of aging infrastructure is being debt-funded.
5.C – Budget Amendment for Silver Lake Dam Modification Project
- Todd Blomstrom presented the history of the Silver Lake Dam (built 1930s, transferred to RPU in 1951, used for cooling water until 2015). The city plans to replace the dam with Rock Arch Rapids. RPU's contribution is based on avoided costs: $2,012,000 in identified repairs plus $653,000 in 20-year O&M, totaling $3,009,700 (net present value). The board previously committed $2 million; this amendment adds $1,009,700 to bring total project funding to $3,009,700. The city will assume ownership after demolition. The board approved the budget amendment, subject to City Council concurrence.
Key Outcomes
- Consent Agenda – Approved unanimously (5-0).
- 4.A – Manhole Rebuild Bid – Approved unanimously (5-0).
- 5.D – Audit Report Acceptance – Approved unanimously (5-0).
- 5.A – Kalmar Booster Engineering Design – Approved unanimously (5-0).
- 5.B – Reimbursement Agreement – Approved unanimously (5-0).
- 5.C – Silver Lake Dam Budget Amendment – Approved unanimously (5-0).
- Board Policy Review – Two policies under review (financial policies and worker safety) will be brought back at a future date. The city council is scheduled to review financial policies on May 27, 2026.
- General Manager's Report – Timothy McCollough highlighted Project Flux, the citywide ERP upgrade, with RPU's phase one go-live expected by spring 2027.
- Adjournment – Meeting adjourned at 5:09 p.m.
Meeting Transcript
It is 401 and I apologize, guys. This meeting is now called to order. As a reminder, this uh it's going to be recorded and recording will be available on the city website. And then the first item we have on the agenda is the approval of the agenda. And I'm just gonna turn it over to the general manager for a quick uh would like to suggest that we change the order of the agenda and take item 5D and move it ahead of 5A, maintaining the numbering just to accommodate our auditors' travel schedule and get them out of the meeting a little bit earlier. So I would uh offer an amendment to the order of the agenda moving 5D ahead of 5A. I'll move to uh approve the uh adjust the amended uh agenda for this night's meeting. Thank you so much. Motion second, any discussion? Hearing none, all in favor, say aye. Aye. Second. Oh, I apologize. Second. Second. Thank you, Wendy. Any discussion? Hearing none, all in favor say aye. Aye. Aye. Opposed? Carries. Perfect. Yeah. Next up, we have our safety moment or our cyber safety moment with Director of Information Technology, Mr. Kelchan. Thank you. And uh so good afternoon, everyone. Uh safety and security both start with awareness and kind of in an homage to some of our practices that we've had in the past and some of the safety moments with Bob Cook. Uh I figured I'd start us off with a story. Um so recently I was at a sporting event um and I happened to park in one of those managed parking lots with the meters in them. You know, the ones where you pull in, get your number, and then you're supposed to go up to a kiosk effectively to pay for your parking. So when I started walking up to the kiosk sign, you know, the kiosk looked right color, had all the it was the city of Minneapolis, all that kind of fun stuff on it. But then I finally got to the QR code sticker and notice it was kind of torn on one corner. So I paused for a second. And it basically raised a simple question. Is this the original QR code? Or did somebody else place a new one over the top of it? And this situation kind of reflects something that happens a lot now, and we've been seeing more in the cybersecurity industry, uh, QR code phishing. Basically, where attackers place a fraudulent QR code um over the top of another thing, and they often do it in public places, um, so that when you scan them, uh you're redirected to a fake payment page or to capture your login credentials or something like that. And because QR codes are kind of hard to visually verify, people tend to trust them more than links and things along those lines. So the takeaway is really straightforward. That two-second pause can obviously prevent a really big issue. Um, if something looks altered or out of place, just don't scan it. Use a trusted app, uh go directly to the official website for the parking place, or choose an alternative alternative payment method. And that same kind of small habit scales. The same quick verification step, you know, applies to links, attachments, and login requests. And pausing is a really simple control, but it's one of the most effective cybersecurity ones that we have. So thank you guys for your time. Thank you so much for that.
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